Household Leverage and the Recession
نویسندگان
چکیده
We evaluate and partially challenge the household leverage view of Great Recession. In data, employment consumption declined more in U.S. states where debt more. study a model monetary union composed many regions which liquidity constraints shape response to changes debt. estimate with Bayesian methods combining state aggregate data. Changes credit explain 40% differential rise fall across states, but small fraction decline 2007–2010. Nevertheless, since deleveraging was gradual, shocks greatly slowed recovery.
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ژورنال
عنوان ژورنال: Econometrica
سال: 2022
ISSN: ['0012-9682', '1468-0262']
DOI: https://doi.org/10.3982/ecta16455